If you’ve longed to run a business and work for yourself rather than putting up with a boss there are two options. Buy an established business by browsing online business sales websites or contact a business broker, whether you want to run a removals business, cleaning operation or digital marketing agency – or start up a new one from scratch.
Both options have advantages and disadvantages, but whichever you decide on, it’s a good idea to consult with lawyers before signing on the dotted line. That way you’ll be sure that all is as it seems and your solicitors will be available to you whenever you need them to ensure everything is done legally.
While it may seem cheaper to start up your own business, there are several good advantages of purchasing one that is a going concern already. Here are some of them.
- There will be immediate income to help pay costs.
- Many lenders view an established business as a better risk than one still in the pipeline.
- There are fewer decisions to make as everything is already there. For instance, if you buy a coffee shop, you won’t have to decide on the decor, or how to set up the furniture.
- There is less work involved in setting it all up.
- You won’t have to worry about the best equipment to buy because it will already be in place.
- There will already be an established customer base.
- You won’t have to hire employees, unless those already there resign, which is not likely.
- Having experienced employees already working there will help you in the running of the business.
- There will be no need to wonder if your business is going to be successful.
- You won’t have to source suppliers because they will already be there. You only have to make sure the agreements are switched over to you.
Of course, the old adage that a new broom sweeps clean may apply, especially if there are some changes that you see as essential. However, it is highly likely that these are not as essential as you may first think. In fact, it is sometimes wise to take a bit of time to see how things go first, before incurring more debt in say, renewing all the furniture.
That said, if you are going to have a ‘grand opening’, you would want something to look different, even if it is only fresh paint on the walls. However, it is also important to be able to pay your mortgage and the suppliers so you can remain in business. It’s a good idea when getting the loan to ask for enough to cover those changes you see as essential.
Many such decisions can be discussed with your financial advisors, lawyers and accountant and it is wise to take heed to the advice they give.